Bulk Sampling Production Permit
The Department of Mineral Resources has granted the parties permission to remove up to 500 million standard cubic feet of gas per annum for a 2 year period (announced to the ASX on the 4th of August). This permit is the first of its kind to be issued with respect to the removal and disposal of natural gas in the Republic of South Africa. If that volume of gas was produced from exploration activities in each of the 2 years and sold at prevailing domestic gas prices assumed conservatively to be US$8/GJ, an amount of approximately US$8m in revenue could be generated.
Could be the best 'sleeper' in the market!
KKO Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
